By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Sunnyvale, Calif. – AMD announced a general restructuring today that will include laying off about 15 percent of its 11,705 workers worldwide.
The news was issued along with the chip makers third quarter financial results which saw the company post a net loss of $157 million on sales of $1.27 billion. Sales were down 25 percent from the $1.7 billion generated during the previous year’s third quarter.
AMD posted a profit during both the same period a year ago and the second quarter of 2012.
AMD president and CEO Rory Read, blamed the loss on a quickly changing industry that caught his company off guard.
“As a result, we must accelerate our strategic initiatives to position AMD to take advantage of these shifts and put in place a lower cost business model. Our restructuring efforts are designed to simplify our product development cycles, reduce our breakeven point and enable us to fund differentiated product roadmaps and strategic breakaway opportunities,” he said.
The layoffs will be completed during the fourth quarter. The company also expects to garner some savings through site consolidations, although it did not give any details on these changes.
The restructuring is expected to save AMD about $20 million in the fourth quarter and $190 million in 2013.
In addition, the company is projecting revenue to decrease by 9 percent next quarter.
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